~$200,000 May 2018 Net Operating Cash Flow

Property for Sale

Property Information

  • Bid Date: August 22, 2018
  • Effective Date: June 01, 2018
  • Closing Date: TBD
  • Area Size: ~4,358 Gross Acres (100% HBU) acre
  • Type of Basin:  

Executive Summary

Eagle River Energy Advisors, LLC has been exclusively retained by Reinecke Partners, LLC ("Seller") for the divestiture of operated working interest assets and associated development rights located in Borden County, Texas of the Permian Basin.

Property Description

Established CO2 Flood Assets

  • ~530 BOE/d net production (48% NGL / 27% Oil / 25% Gas)
  • ~$200,000 May 2018 net operating cash flow
  • Execution-ready uplift projects with multiple development opportunities for near and long-term growth
  • 60 Bcf owned CO2 reserves in the field (>30 Bcf recoverable and salable at ~2% WTI)

 

Consolidated Position with Offset Activity

  • ~4,358 gross acres operated leasehold (100% HBU) unitized in the Cisco Canyon Reef analogous to the offsetting Kinder Morgan SACROC CO2 flood to the northeast
  • 112 gross wellbores in unit with 70.4% WI / 60.5% NRI subject to take in kind on gas and NGL sales
  • Harmonia Operations drilled Griffin 46 1H horizontal Wolfcamp wellbore ~0.5 miles to the west of unit boundary
  • Completion planned for August 2018 with promising shows during drilling

 

Engineered Reserves

  • ~1,712 MBOE / $14.8MM PV10 PDP net Reserves (49 active producing/injecting wells)
  • ~1,209 MBOE / $4.9MM PV10 PDNP net Reserves with 3-year workover program to revitalize wells (15 workovers)
  • ~13,394 MBOE / $66.4MM PV20 PUD net Reserves with CO2 flood expansion and two vertical infill locations
  • ~21,446 MBOE / $38.0MM PV20 Probable net Reserves from 57 potential horizontal wells in the Wolfcamp

 

Significant Upside Opportunity

  • Near-term, low capital upside with 3-year workover program to return non-producing wells to production
  • CO2 Flood expansion upside in unflooded structures and adding pay in existing flood to increase recoverable reserves
  • Vertical infill drilling (2 locations) on structure previously undrained
  • Behind-pipe recompletion (7 wellbores) potential in the Cisco Canyon sand outside of CO2 migration path
  • Unconventional Wolfcamp and Lower Spraberry development commercially viable across acreage

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